tgi friday's
E X C L U S I V E
S I N G L E - T E N A N T
O F F E R I N G
T.G.I. F RIDAY ' S 720 Town Center Drive Dearborn, MI 48126
INVESTMENT HIGHLIGHTS
OFFERING SUMMARY Price
$2,350,000
7.25 Years Remaining on Recent Lease Extension
Down Payment
Rentable SF
9,100
Tenant Recently Removed and Replaced Original Roof
Price Per SF
$258.24
Zero Management Responsibilities
Lease Carries Corporate Guaranty by T.G.I. Friday's, Incorporated
Excellent Location with Access to M-39 (Southfield Freeway) A Population of Over 370,000 Within a Five-Mile Radius Rental Escalations During Renewal Options
Year Built Lot Size
1985 3.37 Acres
Cap Rate
10.64%
Total Return
10.64%
LEASE SUMMARY
Listed by:
Lease Commencement Date
January 27, 1986
Rent Commencement Date
January 27, 1986
Lease Expiration Date
January 31, 2016
Lease Type
Triple Net (NNN)
Lease Term
10 Year Renewal
Increases Options
Offices Nationwide
(100%) $2,350,000
Options Only 2 5-Year
Listing Office: 28411 Northw estern Highw ay, Suite 750 Southfield, MI 48034 • Tel: (248) 415-2600 Fax: (248) 352-3813
WILLIAM T. O'CONNOR Vice President Investments Associate Director Net Leased Properties Group Tel: (248) 415-2631 Fax: (248) 415-2681 License: MI 6501262860, OH SAL.0000441567 William.O'[email protected]
www.marcusmillichap.com
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Detroit, Inc. © 2009 Marcus & Millichap (Activity ID: Q0290012 Property ID: 1632184)
720 TOWN CENTER DRIVE • DEARBORN, MI 48126 OPERATING DATA Rent Increases
Annual Rent
Monthly Rent
1986-1996 1996-2001 2001-2006 2006-2016 Option One Option Two
$230,000.00 $240,000.00 $250,000.00 $250,000.00 $260,000.00 $270,000.00
$19,166.67 $20,000.00 $20,833.33 $20,833.33 $21,666.67 $22,500.00
Base Rent 11/2008-10/2009 ($27.47/SF) Net Operating Income Total Return
$250,000 $250,000 10.64% $250,000
INVESTMENT OVERVIEW Marcus & Millichap is pleased to announce the assignment to exclusively market this T.G.I. Friday's Restaurant located at 720 Town Center Drive in Dearborn, Michigan. T.G.I. Friday's was originally on a 20 year lease that they recently renewed through January 31, 2016, with 7.25 years remaining on their option period. The initial lease was double net in nature (tenant responsible for common area maintenance, real estate taxes and insurance), with the landlord responsible for the roof and structure. However, per the lease, the landlord is only to be responsible for capital items within the initial lease term. Therefore, the tenant is responsible for roof and structural items during its option period. In addition to their current term, T.G.I.
Listing Office: 28411 Northwestern Highway Suite 750 Southfield, MI 48034 Tel: (248) 415-2600 Fax: (248) 352-3813 www.marcusmillichap.com
Friday's also has two five-year renewal options that are equipped with rental escalations of 3 to 4 percent per option term. This is a great opportunity for an investor looking to purchase a passive income deal with zero management responsibilities.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Detroit, Inc. © 2009 Marcus & Millichap (Activity ID: Q0290012 Property ID: 1632184)
S I N G L E - T E N A N T
O F F E R I N G
T.G.I. F RIDAY ' S 720 Town Center Drive Dearborn, MI 48126
INVESTMENT HIGHLIGHTS
OFFERING SUMMARY Price
$2,350,000
7.25 Years Remaining on Recent Lease Extension
Down Payment
Rentable SF
9,100
Tenant Recently Removed and Replaced Original Roof
Price Per SF
$258.24
Zero Management Responsibilities
Lease Carries Corporate Guaranty by T.G.I. Friday's, Incorporated
Excellent Location with Access to M-39 (Southfield Freeway) A Population of Over 370,000 Within a Five-Mile Radius Rental Escalations During Renewal Options
Year Built Lot Size
1985 3.37 Acres
Cap Rate
10.64%
Total Return
10.64%
LEASE SUMMARY
Listed by:
Lease Commencement Date
January 27, 1986
Rent Commencement Date
January 27, 1986
Lease Expiration Date
January 31, 2016
Lease Type
Triple Net (NNN)
Lease Term
10 Year Renewal
Increases Options
Offices Nationwide
(100%) $2,350,000
Options Only 2 5-Year
Listing Office: 28411 Northw estern Highw ay, Suite 750 Southfield, MI 48034 • Tel: (248) 415-2600 Fax: (248) 352-3813
WILLIAM T. O'CONNOR Vice President Investments Associate Director Net Leased Properties Group Tel: (248) 415-2631 Fax: (248) 415-2681 License: MI 6501262860, OH SAL.0000441567 William.O'[email protected]
www.marcusmillichap.com
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Detroit, Inc. © 2009 Marcus & Millichap (Activity ID: Q0290012 Property ID: 1632184)
720 TOWN CENTER DRIVE • DEARBORN, MI 48126 OPERATING DATA Rent Increases
Annual Rent
Monthly Rent
1986-1996 1996-2001 2001-2006 2006-2016 Option One Option Two
$230,000.00 $240,000.00 $250,000.00 $250,000.00 $260,000.00 $270,000.00
$19,166.67 $20,000.00 $20,833.33 $20,833.33 $21,666.67 $22,500.00
Base Rent 11/2008-10/2009 ($27.47/SF) Net Operating Income Total Return
$250,000 $250,000 10.64% $250,000
INVESTMENT OVERVIEW Marcus & Millichap is pleased to announce the assignment to exclusively market this T.G.I. Friday's Restaurant located at 720 Town Center Drive in Dearborn, Michigan. T.G.I. Friday's was originally on a 20 year lease that they recently renewed through January 31, 2016, with 7.25 years remaining on their option period. The initial lease was double net in nature (tenant responsible for common area maintenance, real estate taxes and insurance), with the landlord responsible for the roof and structure. However, per the lease, the landlord is only to be responsible for capital items within the initial lease term. Therefore, the tenant is responsible for roof and structural items during its option period. In addition to their current term, T.G.I.
Listing Office: 28411 Northwestern Highway Suite 750 Southfield, MI 48034 Tel: (248) 415-2600 Fax: (248) 352-3813 www.marcusmillichap.com
Friday's also has two five-year renewal options that are equipped with rental escalations of 3 to 4 percent per option term. This is a great opportunity for an investor looking to purchase a passive income deal with zero management responsibilities.
This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services of Detroit, Inc. © 2009 Marcus & Millichap (Activity ID: Q0290012 Property ID: 1632184)
